ON POSSIBILITIES FOR INDUSTRIAL COOPERATION                          
             AND SPECIALIZATION IN THE BALTIC STATES                            
     The narrow  domestic market  of the  Baltic States is one of               
the factors which impedes the development of profitable industry,               
thereby hampering capital investment in industry.                               
     The Baltic  Assembly recommends  that the  Baltic Council of               
Ministers set out the conditions for joint industrial cooperation               
and integration  of the  Baltic States  based on  cooperation and               
specialization, and  envisage preferred provisions in each of the               
Baltic States  for goods  manufactured in  the Baltic States. The               
Baltic Assembly  suggests that  cooperation and specialization be               
promoted in a number of industries, such as agricultural machine-               
building  industry,   motor-vehicle  industry,   and  in  medical               
instrument and equipment production.                                            
Deputy Chairman of    Chairman            Deputy Chairman of                    
the Presidium of      of the Presidium    the Presidium of                      
the Baltic Assembly   of the Baltic       the Baltic                            
                      Assembly            Assembly                              
Arnold Riuitel        Maris Budovskis     Egidijus Bičkauskas                   
Republic of Estonia   Republic            of Republic of                        
                      Latvia              Lithuania                             
Ryga, April 22, 1995